THE GATT continues to live as the foundation of the WTO. The 1947 agreement itself no longer exists, but its provisions were incorporated into the 1994 GATT agreement. Trade agreements should thus continue to operate during the wto`s implementation. That is why the 1994 GATT is an integral part of the WTO agreement. Anti-subsidion laws protecting domestic import competitors, which can prove that foreign imported products are directly subsidized by the foreign government. protect domestic competitors who can prove that foreign imported products are directly subsidized by the foreign government. Since foreign subsidies are considered unfair trade practices, anti-subsidy is considered an unfair trade right. Subsidies must be geared towards exporting a particular product. These are called specific subsidies. On the other hand, generally available subsidies, which apply to both exporting and domestic enterprises, are not applicable under this provision.
The percentage of subsidy provided by the government is called the subsidy margin. Instead, each country enters a cycle with a single tariff set for each item. The round of negotiations should allow each country to lower its tariffs on average from its original level. So if country A is in discussion with a 10% tariff on refrigerator imports, while Country B has a 50 percent tariff, a typical result of the cycle could lead A to lower its tariff rate to 7 percent, while B lowers its own to 35 percent – the two 30 percent reduction in customs duty. Both countries have liberalized trade, but the GATT has not forced them to adhere to the same trade policy. GATT recognizes that tariffs are the main obstacles to the growth of international trade. As a result, contracting parties have the right to occasionally negotiate a substantial reduction in tariffs. The commitments contained in the GATS can be divided into two broad groups: general commitments that apply to all members and service sectors and commitments that apply only to sectors in a member`s commitment plan. These obligations are defined in individual timetables, the scope of which can vary considerably from one Member State to another. The relevant terms and concepts are similar, but not necessarily identical to those of the GATT; Domestic processing is, for example, a general obligation in trade in goods and non-negotiable as in the GATS.